Article from Australian newspaper on falling scooter sales

http://www.theage.com.au/national/tough-times-hit-scooter-sales-20090707-dbul.html

TWO years ago they were the darlings of the roads: sales were up 400 per cent in three years, and hip new riders were taking to the streets every day.

But in the first six months of 2009 scooter sales collapsed, as economic times got tougher and petrol prices eased.

Figures released by the Federal Chamber of Automotive Industries yesterday showed Australians bought 55,500 motorcycles in the first six months of this year, 14 per cent less than over the same period in 2008. Not too bad, considering the economic downturn, according to the chamber's chief executive, Andrew McKellar.

But scooter sales slumped 29.3 per cent, recording sales of 5592, compared with 7915 over the same six months in 2008.

While the figures looked worse because of the scooter boom two years ago, Mr McKellar said it was still a heavy fall. "Of all the segments in the (motorcycle) market, scooters have been the most affected," he said, blaming lower petrol prices for much of the drop-off.

But Mr McKellar fell short of pronouncing the scooter a short-lived fad. "That would be premature. They remain attractive for all the right reasons - they're economical, they offer lifestyle benefits. They are very fashionable."

Frank Tonon's family has been selling scooters from their store in Collingwood, Vespa House, since 1956. In that time, Mr Tonon had never seen them as fashionable as in the past two years. "In 2007 people saw high petrol prices and started buying," he said yesterday. But he said sales had dropped off dramatically since 2007, when scooters were hailed as a new phenomenon for Melbourne.

"The downturn has been very bad," he says. "One month, I only sold one - and I sold that just to get rid of it." And he predicted more bad times for those in the scooter trade.

Customers regularly tell Mr Tonon he must be selling plenty, because of the downturn. "But people still have a car, and they can't afford right now to keep both. And they're not going to sell the car."

Trevor Small, general manager at motorcycle seller Zagame Automotive in Richmond, said top-end scooters were still moving "reasonably well". But sales of cheaper models had dropped off completely, he said.